As the healthcare sector evolves and becomes more innovative, investors may be left yearning for more traditional approaches to the group. The ARK Genomic Revolution Multi-Sector Fund (CBOE: ARKG) is a prime example of an ETF that captures new opportunities in a sector that’s more innovative than many realize.
ARKG includes companies that merge healthcare with technology and capitalize on the revolution in genomic sequencing. These companies try to better understand how biological information is collected, processed and applied by reducing guesswork and enhancing precision; restructuring health care, agriculture, pharmaceuticals and enhancing our quality of life.
Adding to the allure of ARKG over the near-term and over the long haul are increasing efficiencies in biotechnology research and development.
“The convergence of Artificial Intelligence (AI), Next Generation DNA Sequencing (NGS) and CRISPR gene-editing has the potential to boost the efficiency of drug development radically,” according to AKR Invest research. “It should shorten development timelines, reduce failure rates, and increase returns on R&D in the search for disease cures.”
Analyzing ARKG
Breakthroughs in genomic science can present new treatments to help patients recover from what were once believed to be incurable afflictions. Scientists have identified more than 50,000 genetic diseases caused by single-gene mutations, many of which are likely to be treated through genomic approaches, including several methods that have already begun to receive FDA approval.
Looking ahead, CRISPR-based innovations to accelerate given the technology’s ease of use, cost-efficacy, a growing body of research surrounding its safety and AI-powered CRISPR nuclease selection tools. CRISPR could also be utilized to address some of the most prominent healthcare problems, which opens up a significant investment opportunity in monogenic diseases.
“ARK’s research shows that the convergence of AI, NGS, and CRISPR gene-editing could add trillions to the market capitalization of the Biotech and Pharmaceutical industries while creating a more efficient healthcare system,” according to ARKG’s issuer.
Bolstering the case for ARKG over the long-term is the importance of genomics in an array of clinical trials.
“Drug development companies are making clinical trials more efficient by using NGS to find and enroll patients likely to respond,” adds ARKG. “Half of clinical trials and 80% of oncology trials now collect genetic information. ARK believes clinical trials using genetic diagnostics will result in fewer failed drugs and will increase capital efficiency.”
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The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.